Two Fort Bend Areas Top Houston’s Hottest Real Estate in September

SUGAR LAND, Texas - October 16, 2006 - Sugar Land ranked number one on the Houston Real Estate Hotness Index in September. The hotness ratio measures pending sales as a percent of active listings, and the Sugar Land real estate market saw

20.8 percent of all homes on the market go under contract during that one month. “The hotness index really measures buyer demand for an area,” remarked Toni Nelson, strategic initiatives director for Prudential Gary Greene, Realtors and immediate past chair of the Houston Association of Realtors, “and Sugar Land had more buyer demand than any of the other 44 market areas in Houston!”

Year-to-date, Sugar Land has seen a 3.65 percent increase in single-family units sold over September year-to-date 2005, with 1,645 home sales as opposed to 1,587 units sold last year. Sugar Land’s average sales price is up 3 percent over year-to-date September 2005 and currently stands at $234,633. The most resounding change in Sugar Land from this year to last is a 24 percent drop in the number of homes on the market. With only 548 homes on the market as compared to last year’s 722, there is 3.8 months of inventory in Sugar Land. Months of Inventory measures the current absorption rate and how long it would take for current supply to be depleted if no other listings came on the market. It would only take 3.8 months to deplete the current supply of homes on the market in Sugar Land, clearly indicating that the market pendulum has swung in favor of the seller.

Katy, another Fort Bend area, was number two on the Houston Hotness Index because 17.4 percent of all listings went under contract during September 2006. Katy has seen a 7.21 percent increase in sales over September 2005 with 2,336 homes sold year-to-date. Like Fort Bend, Katy has experienced a 23.48 percent decline in listings with 782 homes on the market, leaving the area with 3.1 months of inventory.

All Fort Bend areas are experiencing more sales than found this time last year, yet none have experienced the depletion of supply of homes to the extent that Sugar Land and Katy have. Missouri City has experienced an 8.4 percent increase in home sales, the Greatwood-Southwest area has experienced a 12.5 percent increase in home sales and the Richmond-Pecan Grove area has experienced a 14 percent increase in home sales.

Where there is demand, there is home price appreciation and the Fort Bend market has experienced appreciation over last year that varies with each market segment of the county. Missouri City has seen the lowest appreciation of all Fort Bend segments at
1.48 percent in comparison to year-to-date September 2005 and the highest home price appreciation has been in the Richmond-Pecan Grove area at 9 percent.

All market indicators point to a very healthy 2006 real estate market for Fort Bend County and the Houston surrounding areas. We are fortunate to live in a metropolitan area that has been immune to the housing deceleration that has occurred in other parts of the country.